MBA and CFA?

I just read the 2005 Investment Management Compensation Survey done by Russell Reynolds, an executive recruitment firm, and noted some intriguing findings. For example, the median salary for an investment professional with 10 years experience working in Singapore is US$133,700, and for one working in the US is US$147,000. Not too big a difference. Also, you’d expect that they will pay more in Japan (high cost of living, etc), but in fact, the same professional only gets US$124,800. In fact, Japanese investment professionals are amongst the worst-paid lot.

Anyway, the most interesting finding, I thought, had to do with the qualification-linked compensation:

1. People with no CFA and no MBA earn the same as those with an MBA.
2. Holders of the CFA charter earn more than holders of MBA degrees.

Point no 1. Imagine spending US$100,000 on an MBA, not to mention the opportunity cost of no income for two years, and coming out to earn the same as the guy who didn’t go to B-school!

Point no 2. A CFA would have cost you less than a tenth of the MBA, with no opportunity costs as you can study at your own pace (and work at the same time). Hmmm… this surely would make you think twice about getting an MBA if you’re in the investment line, no?

With that being said however, the CFA is definitely not a piece of cake. I know many friends who have taken it. Some have failed, some have given up, and some are slowly pushing towards the goal of passing all three levels.

All I know is that I wouldn’t want to be in the same boat as them – weekend studying, getting stressed and losing sleep. For now, I’m content knowing that, on average, the MBAers have nothing over me. :)

p.s. if you would like a copy of the survey, pls drop me a note!